Billing a client

Question 1

Recording bill sent

Answer 1

Client ledger - office column DEBIT

Profit costs ledger CREDIT

Question 2

Transferring balance from client account

Answer 2

When bill sent, transfer any money held on account of future costs (in client account) to office account within 28 days 12.1.4

Question 3

When bill paid

Answer 3

Client ledger - office column CREDIT

Cash ledger - office column DEBIT

Question 4

Bad debts

Answer 4

Can reclaim VAT on unpaid bill after 6 months or if client bankrupt
Bad debts ledger (amount of costs) DEBIT
Client ledger - office column (amount of costs) CREDIT
HMRC ledger - (VAT amount) DEBIT
Client ledger - office column - CREDIT

Question 5

Abatement of costs - (revision to amount billed)

Answer 5

Client ledger - office column - record the abatement of COSTS - CREDIT
Client ledger - office column - record the abatement of VAT - CREDIT
HMRC ledger - VAT abatement - DEBIT
COSTS ledger - record the abatement of COSTS - DEBIT